Part A. Identify the following users of accounting information as either an internal (I) or an external (E) user.
1. Shareholders
2. Creditors
3. Nonexecutive employee
4. Research and development director
5. Purchasing manager
6. Human resources director
7. Production supervisors
8. Distribution managers
Part B. Identify the following questions as most likely to be asked by an internal (I) or an external (E) user of accounting information.
1. What are the costs of our service to customers?
2. Should we make a five-year loan to that business?
3. Should we spend further research on our product?
4. Do income levels justify the current stock price?
5. What are reasonable payroll benefits and wages?
6. Which firm reports the highest sales and income?
7. What are the costs of our productâs ingredients?
Answers: 3
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Part A. Identify the following users of accounting information as either an internal (I) or an exter...
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